The term bankruptcy still carries with it a certain level of stigma. It is often thought that an individual must be careless with finances before bankruptcy even comes into the conversation.
The reality is much more nuanced than this though. While reckless spending can result in financial issues, there isn’t always blame where bankruptcy is concerned. As discussed below, some financial issues are unavoidable and they can impact anyone at any time.
Medical costs are one of the leading causes of debt in the United States. Whether you’re old, young, unemployed or in full-time work, you can fall ill or get into an accident that requires medical treatment. If your insurance does not cover the cost of this treatment, and the treatment is absolutely necessary, then you are going to be responsible for paying for it out of your own pocket. Medical bills can soon run into thousands of dollars, which might be too much for you to ever realistically pay back.
Caring for your family
Your parents provided for you when you were growing up. You wanted for nothing. Now, the roles have reversed because they are having a bit of a tough time financially. You’ve lent them some money to try and clear their feet. The problem is, you lost track of just how much you have lent to them. You’ve left yourself unable to keep up with your bills and other financial obligations.